Planning & Controlling

Presented by Pawan Vijay

E-MAIL:- vijaypawan@in.com
PGPSE Student of AFTERSCHOOOL

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 Planning Ahead

 How do managers plan?

 What types of plans do managers use?
 What are the useful planning tools and
techniques?
 What is the control process?
 What are the common organizational
controls?

Submitted by Pawan, PGPSE Student of AFTERSCHOOOL 2

 Roles of Planning &
Controlling in the Management
Process
Planning-to set the direction
•Decide where you want to go
•Decide how to best go about it

Controlling—To ensure results

•Measure performance
•Take corrective action

Organizing— Leading—
To create structures To inspire effort

Submitted by Pawan, PGPSE 3

Student of AFTERSCHOOOL
What is “Planning”?

Planning is a process of…

setting objectives
and…
determining how to accomplish
them.

Submitted by Pawan, PGPSE 4

Student of AFTERSCHOOOL
 Approaches to Planning

Outside-in Top-Down
• Opportunities
• Threats

Inside-Out
• Strengths
• Weaknesses Bottom-Up

Submitted by Pawan, PGPSE 5

Student of AFTERSCHOOOL
 The Planning Process
Five steps in the Planning Process:

1. Define Objectives
2. Determine where you stand re objectives
3. Develop premises regarding future conditions
4. Analyze and choose among action alternatives
5. Implement the Plan

Submitted by Pawan, PGPSE 6

Student of AFTERSCHOOOL
 Benefits of Planning
Planning improves:

Focus & Flexibility

Action Orientation
Coordination
Time Management
Control

Submitted by Pawan, PGPSE 7

Student of AFTERSCHOOOL
 Types of Plans Used by
Managers

• Short-Range & Long-Range Plans

– Short-range plans = 1 year or less

– Intermediate-range plans = 1 - 2 years
– Long-range plans = 3 or more years

Submitted by Pawan, PGPSE 8

Student of AFTERSCHOOOL
 Types of Plans Used by
Managers
• Strategic & Operational Plans

• Policies & Procedures

– Standing Plans

• Single –Use Plans

– Budgets

Submitted by Pawan, PGPSE 9

Student of AFTERSCHOOOL
 Planning Tools &
Techniques
• Forecasting
– Process of predicting what will happen in the future

• Contingency Planning
– Identifies alternative courses of action to take when
things go wrong
• Scenario Planning
– Identifies alternative future scenarios and makes plans
to deal with them
Submitted by Pawan, PGPSE 10
Student of AFTERSCHOOOL
 Planning Tools &
Techniques
• Benchmarking
– Uses external comparisons to gain insights for
planning
– Best Practices Technique
• Staff Planners
• Participatory Planning
– Includes persons who will be affected by plans
and/or who will implement them

Submitted by Pawan, PGPSE 11

Student of AFTERSCHOOOL
The Control Process
Step 1:
Establish performance
objectives & standards

Step 4 Step 2:
Take Measure
Necessary The Control Process Actual
action performance

Step 3:
Compare actual
Performance with
objectives and standards

Submitted by Pawan, PGPSE 12

Student of AFTERSCHOOOL
The Control Process-Step 3
• Control Equation:
Need for Action = Desired Performance –
Actual Performance
• Three Types of Comparisons:

1. Historical Comparison
2. Relative Comparison
3. Engineering Comparison

Submitted by Pawan, PGPSE 13

Student of AFTERSCHOOOL
Management by Exception
• Practice of giving attention to situations
that show the greatest need for action
• Saves valuable time, energy & other
resources by focusing attention of high-
priority areas
• Two types of exceptions:
– Problem Situation
– Opportunity Situation

Submitted by Pawan, PGPSE 14

Student of AFTERSCHOOOL
 Types of Control

Feedforward Controls

Concurrent Controls

Feedback Controls

Submitted by Pawan, PGPSE 15

Student of AFTERSCHOOOL
Common Organizational
Controls

Management by Objective (MBO)

Employee Discipline Systems

Break-Even Analysis

Submitted by Pawan, PGPSE 16

Student of AFTERSCHOOOL
THIS IS THE REAL MBO

• Joint objective setting

• Individual works
• Supervisor supports
• Joint review of results

Submitted by Pawan, PGPSE 17

Student of AFTERSCHOOOL
“Hot Stove Rules” of Employee
Discipline
• A reprimand should be immediate; a hot stove burns the first time you
touch it.
• A reprimand should be directed toward someone’s actions, not their
personality; a hot stove doesn’t hold grudges, doesn’t try to humiliate
people, and doesn’t accept excuses.
• A reprimand should be consistently applied; a hot stove burns anyone
who touches it, and it does so every time.
• A reprimand should be informative; a hot stove lets a person know
what to do to avoid getting burned in the future—“Don’t touch.”
• A reprimand should occur in a supportive setting; a hot stove conveys
warmth but also operates with an inflexible rule—“Don’t touch.”
• A reprimand should support realistic rules; the don’t-touch-a-hot-stove
rule isn’t a power play, a whim, or an emotion of the moment; it is a
necessary rule of reason.

Submitted by Pawan, PGPSE 18

Student of AFTERSCHOOOL 8.1
 Employee Discipline
Systems
• Discipline:
– The act of influencing behavior through
reprimand.

• Progressive Discipline:
– Ties reprimands to the severity and frequency
of misbehavior.

Submitted by Pawan, PGPSE 19

Student of AFTERSCHOOOL
 Break-Even Analysis
Total Sales
Revenue

Break-even Point f i t
Revenues = Costs r o
P
Total Costs =
Dollar Fixed+Variable
Costs &
Revenues Variable Costs
ss
Lo
Fixed Costs

Unit Sales
Submitted by Pawan, PGPSE 20
Student of AFTERSCHOOOL
 Review Questions

How do managers plan?

What types of plans do managers
use?
What are the useful planning tools
and techniques?
What is the control process?
What are the common organizational
controls?

Submitted by Pawan, PGPSE 21

Student of AFTERSCHOOOL